Now move back your timeline and do all of Europe. You can say what you like about the morality of it but this is how every country in existence came to be at one point in time. Conquest by military force is, and always has been, the way of the world. Of course its a shitty system but we don’t have another one.
Even a two state solution isn’t a peaceful option in the Western sense of the word. It’s just one massive military (the US) imposing its will on another nation (Israel). The only reason it works in a “peaceful” way is because the military and economic forces that can be brought to bear by both parties are so disparate. It’s not a tenable long term solution for us to play middle man. Sooner or later, and my money is on sooner, we’ll be unable or uninterested in containing the situation and then whichever group has the ability will go to work wiping the other out. It’s simply human nature. All of history attests to this fact.